I would say "yes". Simply because you can MAKE money on that cash in the time it would take to pay it off.
Thoughts on financing
- Thread starter R4744
- Start date
re: What if you don't need a 2nd mortgage, don't have a job, and don't have monthly payment.... still finance it?
I fit all 3 of those conditions and I paid cash... Prefer to OWN outright everything from the getgo.
I fit all 3 of those conditions and I paid cash... Prefer to OWN outright everything from the getgo.
fried1765
Well-known member
Equipment
Kubota L48 TLB, Ford 1920 FEL, Ford 8N, SCAG Liberty Z, Gravely Pro.
Fortunately, your $ situation seems solid.
What Jay is pointing out is that if economic conditions should go sour, a tractor payment could possibly spiral into a major issue,..... for some.
Jay did pick a worst case scenario,...... but not an impossible scenario.
dirtydeed
Well-known member
Lifetime Member
Equipment
B2650 BH77, U27-4R2, BX23TLBM, box blade, rear blade, flail mower, Stump Grinder
Just to set the record straight, you do not need to have KTAC insurance when using Kubota financing. You just need to have the machine insured. Kubota credit will require all that insurance information prior to approving the Kubota credit application.
I did not elect to get KTAC on the excavator purchase using Kubota credit. The KTAC insurance was better that 4X the cost of adding the additional equipment coverage to my business policy. Yes, I may regret that decision some day but I wasn't about to pay the KTAC premium on top of an already inflated equipment price.
As far as 0% financing. I bought a new BX23 in 2006 with that very same credit offer. It's been around for a very long time.
I did not elect to get KTAC on the excavator purchase using Kubota credit. The KTAC insurance was better that 4X the cost of adding the additional equipment coverage to my business policy. Yes, I may regret that decision some day but I wasn't about to pay the KTAC premium on top of an already inflated equipment price.
As far as 0% financing. I bought a new BX23 in 2006 with that very same credit offer. It's been around for a very long time.
A lot of the disagreement around Kubota’s “0% financing” comes down to how people frame money over time. On paper, it’s easy to say interest is “baked in,” and in many cases manufacturers do structure incentives so the effective cost is embedded in the price. But that doesn’t automatically make financing a bad decision, it just shifts the conversation to liquidity, opportunity cost, and cash flow flexibility.
From a practical standpoint, if a buyer can comfortably make the payments and keeps their cash working elsewhere, the math can still work in their favor, especially in an inflationary environment where future dollars are worth less. On the other hand, if the equipment is being overbought because “0%” feels free, that’s where people can get tripped up.
A useful way to look at it is through a broader financial planning lens, similar to what firms like Mercer Wealth Management emphasize around disciplined capital allocation. Their values discussion by just click here, focuses on intentional decision-making and aligning financial choices with long-term objectives rather than just short-term incentives.
So in the context of Kubota, financing itself isn’t really the issue, it’s whether the structure supports the buyer’s overall financial plan, cash reserves, and return opportunities elsewhere. For some, paying cash is simplest and cleanest. For others, structured financing can preserve flexibility without necessarily increasing real cost in a meaningful way.
From a practical standpoint, if a buyer can comfortably make the payments and keeps their cash working elsewhere, the math can still work in their favor, especially in an inflationary environment where future dollars are worth less. On the other hand, if the equipment is being overbought because “0%” feels free, that’s where people can get tripped up.
A useful way to look at it is through a broader financial planning lens, similar to what firms like Mercer Wealth Management emphasize around disciplined capital allocation. Their values discussion by just click here, focuses on intentional decision-making and aligning financial choices with long-term objectives rather than just short-term incentives.
So in the context of Kubota, financing itself isn’t really the issue, it’s whether the structure supports the buyer’s overall financial plan, cash reserves, and return opportunities elsewhere. For some, paying cash is simplest and cleanest. For others, structured financing can preserve flexibility without necessarily increasing real cost in a meaningful way.